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Assessing the direct and spillover effects of shocks to refugee remittances

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  • Alix-Garcia, Jennifer
  • Walker, Sarah
  • Bartlett, Anne

Abstract

We examine the impact of exogenously shutting down remittances to Kakuma refugee camp in northern Kenya during 2015. We find that the remittance shutdown did not reduce refugee consumption on average. However, it did decrease consumption of households that previously received remittances through the networks that were closed, while simultaneously increasing consumption for those who continued to receive remittances through other mechanisms. The shutdown also resulted in decreases in the probability of consuming a variety of goods by the host population, particularly those with livelihoods linked to the refugee camp. These findings underscore the tight links between refugee camps and surrounding communities, and are a testament to the multiplier effects of remittances.

Suggested Citation

  • Alix-Garcia, Jennifer & Walker, Sarah & Bartlett, Anne, 2019. "Assessing the direct and spillover effects of shocks to refugee remittances," World Development, Elsevier, vol. 121(C), pages 63-74.
    • Handle: RePEc:eee:wdevel:v:121:y:2019:i:c:p:63-74
    DOI: 10.1016/j.worlddev.2019.04.015
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    Cited by:

    1. Verme, Paolo & Schuettler, Kirsten, 2021. "The impact of forced displacement on host communities: A review of the empirical literature in economics," Journal of Development Economics, Elsevier, vol. 150(C).
    2. Michael Christian Lehmann, 2023. "Macroeconomic volatility and anti‐refugee violence in developing countries: Evidence from commodity price shocks," Review of Development Economics, Wiley Blackwell, vol. 27(2), pages 992-1012, May.
    3. MacPherson, Claire & Sterck, Olivier, 2021. "Empowering refugees through cash and agriculture: A regression discontinuity design," Journal of Development Economics, Elsevier, vol. 149(C).
    4. Hai-Anh H. Dang & Paolo Verme, 2023. "Estimating poverty for refugees in data-scarce contexts: an application of cross-survey imputation," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(2), pages 653-679, April.

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    More about this item

    Keywords

    Refugees; Remittances; Impacts on hosts;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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